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New Leadership Approach (Transformational, Visionary, Charismatic & Level 5 Leadership)

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Presentation on theme: "New Leadership Approach (Transformational, Visionary, Charismatic & Level 5 Leadership)"— Presentation transcript:

1 New Leadership Approach (Transformational, Visionary, Charismatic & Level 5 Leadership)

2 Stages of Leadership Theory & Research Source: Parry, K.W. & Bryman, A. (2006) Leadership in organizations, In S.R. Clegg, C. Hardy, T.B. Lawrence & W.R. Nord. Handbook of organizational studies (2nd ed), Sage. Post-charismatic & Post-transformational emerged late 1990s, distributed leadership, cooperative community-ship & spirituality Trait Approach dominant until late 1940s - assumes leaders born, not made Style Approach held sway until late 1960s - effects of leadership on those led Contingency Approach or Situational Approach popular to 1980s - situational factors are focus for understanding leadership New Leadership Approach since 1980s, leader defines organizational reality through articulation of a vision

3 Orientation Examine 'maps and models' of New Leadership Transformational and transactional leadership Charismatic Leadership and the uniqueness of the special leader Dilemma of the ego- driven transformational leader Shift of focus to Level 5 or upper-level leadership (post-charismatic) All Leader- focussed still 4nBIjV2I

4 James McGregor Burns (1978) on Empowerment Burns is pioneer of new and transformational leadership Transforming nature of a leadership act understood through unexpected and individualistic action of individual Leadership roles exist in web of relationships which offer insights into how values impact on leadership Initiating acts trigger value-laden reactions by individuals acting out their roles Burns, J.M. (1978) Leadership, New York: Harper & Row

5 The New Leadership Approach  Transformational leadership (Bass, 1985)  Charismatic leadership (Conger, 1989)  Visionary leadership (Westley & Mintzberg, 1989) Leader revealed as someone who defines organizational reality through the articulation of a vision which is a reflection of how they define the organization’s mission and the values which support it. Depict leaders as mangers of meaning rather than in terms of an influence process Bass, B.M. (1985) Leadership and performance beyond expectations, New York: Free Press. Conger, J.A. (1989) The charismatic leader: Behind the mystique of exceptional leadership. San Francisco, CA, US: Jossey-Bass Westley, F. & Mintzberg, H. (1989) VISIONARY LEADERSHIP AND STRATEGIC MANAGEMENT. Strategic Management Journal 10, SPECIAL ISSUE, pg. 17

6 Transactional & Transformational Leadership Leadership theories have emphasized leadership as an exchange process Transactional leadership: leader identifies with what followers want or prefer & helps them achieve level of performance that results in rewards that satisfy them Transformational leadership: leader has ability to inspire and motivate followers to achieve results greater than originally planned and for internal rewards

7 4i’s: Transformational Factors Idealized influence Act as role models, attract admiration, respect & trust, put needs of others before personal interests, take risks & demonstrate high standards of ethical conduct Inspirational motivation Motivate & inspire others by providing meaning & challenge, arouse team spirit, show enthusiasm & optimism, communicate expectations, demonstrate commitment Intellectual stimulation Question assumptions, reframe problems, approach old issues in new ways, encourage innovation & creativity, avoid public criticism of mistakes Individualized consideration Attend to individual needs for growth & achievement, act as coach or mentor, create new learning opportunities, accept individual differences, avoid close monitoring From: Bass & Avolio (1994) Improving organisational effectiveness through transformational leadership. Thousand Oaks, CA: Sage

8 Yukl (1999) Tips for transformational leadership 1.Develop a challenging and attractive vision, together with the employees. 2.Tie the vision to a strategy for its achievement. 3.Develop the vision, specify and translate it to actions. 4.Express confidence, decisiveness and optimism about the vision and its implementation. 5.Realize the vision through small planned steps and small successes in the path for its full implementation. Yukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285An evaluation of conceptual weaknesses in transformational and charismatic leadership theories

9 Research findings Bass’s model examined using Multifactor leadership Questionnaire (MLQ) (see Alimo-Metcalfe & Alimo-Metcalfe) Two similar and differentiable leadership styles? –Idealisation of leader –Inspirational content of leader’s words or vision –Together a measure of charismatic leadership style Provides an expanded picture of leadership that includes the exchange of rewards & leader’s attention to growth of followers Places a strong emphasis on followers’ needs, values, and morals - motivated to transcend self-interests for good of team Best leaders are both transformational and transactional

10 Mean difference among men and women managers in MLQ scores when rated by subordinates Leadership Scale Transformational Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Transactional Outcomes Contingent reward Management –by-exception (active) Management –by-exception (passive) Laissez-faire Extra effort Effectiveness Satisfaction Bass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management. Vol 33 (4) pp MaleFemale

11 Management by exception Contingent reward + TRANSACTIONAL LEADERSHIP Idealized influence + Individualized consideration + Inspirational motivation Intellectual stimulation + TRANSFORMATIONAL LEADERSHIP EXPECTED OUTCOMES PERFROMANCE BEYOND EXPECTATIONS The additive effect of transformational leadership Adapted from: Bass, B.M. (1990) Bass & Stogdill's Handbook of leadership: theory, research and managerial applications, 3rd ed., New York: Free Press.

12 Leadership Based On Charismatic Grounds The term ‘charisma’ will be applied to a certain quality of individual personality by virtue of which s/he is considered extraordinary and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are such as not to be accessible to the ordinary person, but are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a ‘leader’. M. Weber (1968) Economy and Society, 1, p. 247

13 stage one detecting unexploited opportunities & deficiencies in the present situation sensitivity to constituent’s needs formulating an idealized strategic vision stage two communicating the vision articulating the status quo as unacceptable & the vision as the most attractive alternative articulating motivation to lead followe rs stage three building trust through technical expertise, personal risk- taking, self- sacrifice and unconventional behaviour stage four demonstrating the means to achieve the vision through role modelling, empowerment and unconventional tactics Stages in Charismatic Leadership (Conger & Kanungo 1988) ""FREEDOM!"" Conger, J.A. and Kanungo, R.N. (1988) Charismatic leadership: the elusive factor in organizational effectiveness. Jossey-BassCharismatic leadership: the elusive factor in organizational effectiveness

14 Charismatic Leadership: A Relationship Between Leaders & Followers Characteristics of Charismatic Leaders  High degree of self confidence  Strong conviction about ideas  High energy & enthusiasm  Expressiveness & excellent communication skills  Active image building & role modelling Characteristics of Followers of Charismatic Leaders  High degree of respect & esteem for the leader  Loyalty & devotion to the leader  Affection for the leader  High performance expectations  Unquestioning obedience Nahavandi, A. (2000) The Art & Science of Leadership. Prentice-Hall Elements of Charismatic Situations  Availability of dramatic symbols  Opportunity to clearly articulate followers’ role in managing the crisis  Sense of actual or imminent crisis  Perceived need for change  Opportunity to articulate ideological goal

15 Conger (1990) The Dark Side of Leadership (ego-led and narcissistic leadership) Conger warns of dangers associated with high-profile leadership practices Looks at leaders first hailed as exemplary & later as misguided or morally suspect Leader’s distort vision to meet egocentric ambitions Leader develops sense of invulnerability & belief in ‘rightness’ of their vision Failure of charismatic leader due to:  Commitment to vision – shift to single-minded obsessiveness  Authentic communication – with vision as extension of leader’s personality needs communication is less authentic  Style of charismatic leader – exclusion and stereo-typing Conger, J.A. (1990) The dark side of leadership. Organizational Dynamics, ISSN , 1990, Volume 19, Issue 2, pp The dark side of leadership

16 'Heroic' Leaders A Danger? Theory & research emphasizes the primary importance of a single, heroic leader Charismatic, transformational leadership – effect leader influences followers to make self-sacrifices and exert exceptional effort Influence is uni-directional – flows from leader to followers – success due to efforts of leader Heroic leader expected to be wiser and more courageous than subordinates, and to know everything that is happening Leaders seldom live up to expectations Shared responsibility for leadership functions & empowerment = more effective than heroic leadership (Bradford & Cohen, 1984) Shared responsibility unlikely to occur as long as people expect individual leader to take full responsibility for fate of organization

17 “What catapults a company from merely good to truly great? A five-year research project searched for the answer to that question, and its discoveries ought to change the way we think about leadership” " The most powerfully transformative executives possesses a paradoxical mixture of personal humility and professional will. They are timid and ferocious. Shy and fearless. They are rare - and unstoppable." Collins, 2001 Beyond the heroic new leader Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January, 65-76

18 Jim Collins on the Fifth Level Leader "Beyond Charisma" Collins examined features of exceptional companies From 1400 companies eleven chosen as showing sustained excellence Strongest differentiating factor of these companies termed ‘level five leadership’ Yin Humility & Shyness characteristics Shunning publicity Acting with quiet, calm determination Ambitious for the company, rather than self Accept full responsibility for failure Give credit to others Develop successors Yang Wilfulness & Fearlessness characteristics Unwavering resolve regardless of difficulties Unwillingness to settle for anything but the best (Collins 2001) Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January, 65-76

19 The Level 5 Hierarchy COMPETENT MANAGER Competent manager, effectively organizes towards predetermined goals CONTRIBUTING TEAM MEMBER Leadership as collaborative team efforts LEVEL 5 EXECUTIVE Executive builds great companies through exercise of personal humility and wilfulness EFFECTIVE LEADER Effective leader, promoting commitment to compelling vision & high performance standards HIGHLY CAPABLE INDIVIDUAL Individual‘s talent, knowledge, & skills are key contribution Level 5 Level 4 Level 3 Level 2 Level 1 Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January, 65-76

20 Summary Charismatic / Transformational leadership contrasted with economic exchange models of transactional leadership Exposes mechanisms through which leaders manage change Bass presents leaders as having range of leadership style – transformational modes an addition to transactional ones Encourages leadership development at all organizational levels Association of new leadership with follower empowerment helps understand dark side of leadership and egocentric behaviours of some leaders Challenging dilemmas examined help broaden understanding of leadership excellence Collins' work suggests transformative leaders need not be heroic/overtly charismatic but possess humility and will.

21 Summary cont. A move away from trait, style and behavioural models Leadership seen as a socially constructed process Revived interest in leader’s personal characteristics Role of leadership traits: Key traits are not enough to make a leader - they are a precondition for effective leadership Experience, correct choices and exposure to right situations are also key to allow talents to develop

22 "The New Transformational Superleader" The TheoryThe new transformational superleader traitmust have the right personality, appearance, attributes, voice etc. stylemust be caring, inspirational and visionary, ethical, risk taker etc. contextualstyle is consistently with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisation Huczynski & Buchanan (2007) Organisational Behaviour. 6 th ed. Harlow : Financial Times Prentice Hall

23 Key reading and resources READING FOR SEMINAR Yukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285An evaluation of conceptual weaknesses in transformational and charismatic leadership theories KEY TEXTS Northouse (2012) Chapter 9 Jackson and Parry (2011) Chapter 2 OTHERS Bass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management. Vol 33 (4) pp Conger, J.A. (1990) The Dark Side of Leadership. Organizational Dynamics Vol19(2): p.44The Dark Side of Leadership Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January, 65-76


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